When the government bans a good it:
A) creates a more efficient solution than any other to the nonexcludability problem.
B) is an easy, but often ineffective, solution to the nonexcludability problem.
C) increases surplus more than any other solution to the nonexcludability problem.
D) is the easiest and most effective solution to the nonexcludability problem.

Question

Quizplus · Accepted Answer

When the government bans a good, it is an easy solution to the nonexcludability problem, but it can often be ineffective. People may still find ways to access the banned good through illegal means, and the ban may lead to negative consequences such as increased crime or a black market. Other solutions, such as taxation or regulation, may be more effective in reducing the negative externalities associated with nonexcludable goods or services.

When the Government Bans a Good It